23/2/25, 7:08 PMP Practice Exam 2 | Practice Test for Project Management Professionals

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PMP Practice Exam 2

This the second of our free PMP practice exams. It includes 50 challenging
practice questions along with detailed explanations. All of the topics are
covered in the same proportion as they appear on the Project Management
Professional certification exam. Continue your exam prep right now with our
second free PMP practice test.

Results

36 of 50 Questions answered correctly

Your time: 00:41:48

You have reached 36 of 50 point(s), (72%)

View Questions

As a project manager, you are using root cause analysis to determine

what the potential risks might be in your project. Which process best
describes the process in which you are involved?

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Plan Quality

Identify Risks

Control Quality

Plan Risk Responses

Correct
You are in the Identify Risks process because root cause analysis tools can
help identify potential threats based on past experience of issues
experienced. Root cause analysis is used in both quality management and
risk management. However, the situation explained in this question refers
only to the information gathering techniques of the Identify Risks
process.

You are a construction project manager. In a formal project

management training you are told that you need to collect information
on contract schedule, scope, quality, and cost performance along with
all contract change documentation, payment records, and inspection
results. You are also told by your instructor that this information can be
used for lessons learned and as a basis for evaluating contractors for
future contracts. Which document is your instructor talking about?

Claims Administration

Close Project or Phase

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Inspections and Audits updates

Procurement Documentation

Incorrect
According to the PMBOK® Guide (6th Edition), to close the contract, all
procurement documentation is collected, indexed, and filed. Information
on contract schedule, scope, quality, and cost performance along with all
contract change documentation, payment records, and inspection results
are cataloged. This information can be used for lessons learned and as a
basis for evaluating contractors for future contracts.

You have just been assigned to the photo transfer project. You are
beginning to meet with the stakeholders and have made some
observations. You notice that the team of seven software developers has
been given quite a bit of autonomy in how they conduct their work. The
sponsor is pleased with the work so far, as is the business representative,
who has been giving the team regular feedback on their deliverables.
What methodology is the team most likely following?

Adaptive

Predictive

Hybrid

Waterfall

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Incorrect
Small autonomous teams that have earned the trust of project
stakeholders are characteristics of an adaptive culture. The fact that the
team is receiving regular feedback is another clue that an iterative,
incremental lifecycle is likely being followed.

You are several weeks into a new project, which is one of the most
visible ones in the company. You are still getting the lay of the land and
meeting with various stakeholders that include suppliers, customers,
functional managers, and individual contributors. At some of these
meetings, you are beginning to hear talk that not everyone is pleased
that this project is taking place and is being given such high priority. You
realize you have some tools that might assist you in fleshing out this
problem. Which one would be most appropriate for you to use?

The use of surveys to get feedback.

The stakeholder engagement assessment matrix.

The use of ground rules.

Preparing and delivering a PowerPoint presentation to all the

stakeholders on the benefits of the project.

Correct
The Stakeholder engagement assessment matrix (SEAM) enables you to
plot whether stakeholders are resistant, neutral, supporting, or leading in
their attitude towards the project. Based on where you would like each of
these stakeholders to be, you can plot strategies to gain their support.
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Not every stakeholder will require a strategy, so it is important to plot

where each is desired to be.

According to the latest update of the project schedule, you realize that
the project will be completed one month after the desired completion
date. You have extra resources on hand and the activity dependencies
are preferential. The project is not of high risk and the SPI up to now is
0.89. As a project manager, what would be your best course of action
under these circumstances?

Make more activities concurrent

Leveling the resources

Shift some of the resources from the preferential dependencies to

the external ones

Eliminate some of the activities which are of lower importance

Correct
Leveling the resources would generally increase the project duration.
Removing the activities under some conditions and using the project
change process (discretionary dependency) might be possible but
considering that dependencies are preferential and you have extra
resources the first thing could be to make more activities concurrent.

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Conflicts are common and unavoidable in projects. Which of following

are the three most common sources of conflicts in projects?

Schedules, Cost, Resources

Schedules, Project priorities, Resources

Cost, Resources, Personalities

Project priorities, Resources, Cost

Correct
Conflict can come from seven main sources, of which the first three
account for 50%:

1. Schedules
2. Project priorities
3. Manpower/human resource availability
4. Technical opinions
5. Procedural or project administration
6. Costs
7. Personalities

As the manager of a highly critical project, you walk into your office and
receive a phone call from your client notifying you that they need an
urgent review meeting about the delay that occurred in the delivery of
one of the major pieces of equipment for the project. You open your e-
mail and you get bombarded with the emails coming from two of your
team about a conflict that started between them this morning. After a
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few minutes you get a phone call from one of them while the other one
shows up at your office. Which conflict resolution technique would you
use immediately?

Collaborating

Forcing

Compromising

Smoothing

Correct
Collaborating or problem solving is the best way to resolve conflict but
not in this situation. Since you should choose a technique to deal with
the conflict immediately and it’s explained that there is an urgent
meeting on an important issue in your critical project that you that you
need to take care of, the best method in this situation would be to delay
the conflict resolution, i.e. smoothing.

You have recently been assigned as the manager of a highly critical

national project which should be finished in a very short period of time
compared to the similar projects. After developing the first draft of the
project network diagram you see that the project cannot be finished on
time. If the network diagram cannot be changed anymore and you have
extra human resources, what would be the best approach?

Fast tracking

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Crashing

Risk analysis

Leveling the resources

Correct
In this situation, leveling the resources will generally increase the
duration. Since the network diagram cannot be changed, the fast tracking
option is also not feasible. So crashing remains as the best option in this
situation to decrease the duration.

You have just been hired as the project manager in a large company and
given the approved project charter. You know that your company always
undertakes very challenging projects and your project is not an
exception. What should be your first course of action?

Plan risk management

Confirm that all of the stakeholders have contributed to the scope

Identify project risks

Start developing project management plan

Incorrect

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Read the question carefully. You as the project manager have not been
involved in the project charter development, therefore it is your
responsibility to make sure that the charter is complete and all of the
stakeholders have their inputs in it before proceeding with the next step
in project planning.

As the manager of a large project, including a huge part of procurement

activities, you are about to start project closure activities. All final
deliverable of the project are validated. What should be your first step in
project closure?

Start closing out contracts

Ensure completion of scope as per Project Management Plan

Start Claims Administration

Start Administrative Closure

Incorrect
According to the PMBOK® Guide (6th Edition), when closing the project
the project manager must review all the prior information from the
previous phase closure to ensure that all project work is completed and
that the project has met its objectives. Since project scope is measured
against the scope management plan, the project manager reviews the
scope baseline (part of the project management plan) to ensure
completion before considering the project closed.

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You are managing a project which is facing some minor delays in the
submission of a few project deliverables. You have been asked to a
meeting with the team members in charge of the delayed deliverables.
Which one of the following tools do you think is the best to be used
during the meeting to show the project schedule status to the
responsible team members?

Gantt Chart

Project Network Diagram

Milestone Chart

Responsibility Assignment Matrix

Correct
In a meeting with team members you need a tool which shows the
schedule details such as delays, completion, and timeline.

Which one of the following items determines the acceptable range of

variation of a process on a control chart?

Mean

Upper and Lower Control Limits

Standard Deviation

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Specification Limit

Correct
The control limits are set based on the company’s quality standard and
indicate the acceptable range. Upper and lower control limits are usually
set at +/− 3sigma.

Which technique is not a helpful practice in creating cultural

compatibility for an agile approach?

Active executive sponsorship

Management adjusting how team members are assessed

A focus on getting things right the first time

A focus on going fast but not hurrying.

Incorrect
A focus on getting things right the first time fits with a plan-driven rather
than a change-driven approach. The other answer choices describe
helpful strategies in an Agile project approach. Agile work should occur
at a manageable pace.

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You have recently been assigned as the manager of a project after the
previous manager quit the company. From the first meetings with the
project team you discover that the morale of the team is very low. You
speak to some of the team members in private and you feel that they
were not given opportunities to participate in team development
activities and that they did not have opportunities to grow. Which of the
following is a primary factor for this situation?

Use of zero-sum rewards in the project

A poorly defined resource calendar

Too many hierarchical levels in the project organization chart

Poor communication planning

Incorrect
According to the PMBOK® Guide (6th Edition), resource calendars
identify times when the project team members can participate in team
development activities. If the team members are unable to find time for
such activities, it is likely that the calendar has been poorly planned out.

You are a junior project manager, currently performing schedule

controlling activities. You approach one of your experienced colleagues
for advice on how to reanalyze the project and predict the project’s
remaining duration. She tells you to analyze the sequence of activities
with the least amount of scheduling flexibility. Which technique is she
referring to?

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Gantt chart

Critical path method

Resource leveling

Precedence diagramming method

Correct
The Gantt chart is only a representation of the project schedule, not an
analysis method. The precedence diagramming method is a diagramming
technique that deals with the relationship between activities, not
schedule flexibility. Resource leveling is used to smooth the use of the
resources over a period of time. The only option that deals with schedule
flexibility is the critical path method which uses activity floats.

Tom is managing a project and he has scheduled a number of training

programs for his team. However, he knows that apart from planned
training, unplanned training also takes place in a number of ways. Which
of these is not one of the ways in which unplanned training can happen?

Conversation

Online

Observation

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Project performance appraisals

Incorrect
According to the PMBOK® Guide (6th Edition), scheduled training occurs
as stated in the Human Resource plan and could include online,
classroom, on-the-job, etc. Unplanned training, however, takes place
through conversation, observation and project performance appraisals
conducted during the controlling process of managing the project team.

As the project manager, you are reviewing the control chart related to
one of the project deliverables, and you find seven data points in a row
on one side of the mean. What should be your next action?

According to the rule of seven this is normal and no action is

required

Modify the mean

Perform the quality measurements again to make sure about the

data points correctness

Find an assignable cause

Correct
This is an example of the application of the rule of seven in control charts.
If you have seven data points in a row on the same side of the mean,

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statistically the mean has shifted, calling for action to correct the
problem. Therefore, the first action is to find the cause of the errors.

As the manager of a large construction project you are currently

conducting a meeting with the project management team to decide on
a procurement contract. There are opposing views among the team
members on the type of contract that best suits your situation. Which
one of the following types of contracts have the most cost risk for your
organization as a buyer?

Cost plus percentage of costs

Fixed price incentive fee

Time and materials

Cost plus award fee

Correct
In a cost plus percentage of costs contract, the buyer pays all costs while
the costs are not limited. In a fixed price type of contract, the buyer has
the least cost risk, as any cost overruns are borne by the seller.

As a project manager you are approached by one of the project

stakeholders asking for a change in the project work breakdown
structure. The stakeholder brings enough reasons to show that the

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change does not affect the project time or cost. What is the best action
for you in this situation?

Ignore the change and ask the stakeholder to formally request a

change

Since there are no time and cost effects, implement the change

Raise the change to your management

Look for other impacts that the change may have

Correct
Even though it may not directly affect the time or cost of the project, you
need to look at all the impacts of a change on other project constraints.
The change may increase risk, reduce quality, etc. As a project manager
the best thing to do is to know all of the impacts of a change before
taking any other action.

As a project manager, Tom is currently involved in the Control

Procurements process. According to the records, one of the vendors has
not delivered the items on time. The root-cause analysis shows that the
problem was in the proposal evaluation activities that could have been
done more accurately. What should Tom do at this point?

Update Procurement Documentation

Update Organizational Process Assets

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Conduct Procurement Audits

Update Procurement Contracts

Incorrect
Lessons learned are a part of Organizational Process Assets. The Project
Manager should update this with the procurement experience so that
future projects can benefit. Organizational Process Assets Updates are an
output of Control Procurements.

All of the followings are examples of the cost of nonconformance

except?

Warranty costs

Rework

Inspection

Penalties

Correct
Costs of non-conformance are costs incurred when a project fails to meet
the required level of quality. Failure costs are also called costs of poor
quality. Costs of non-conformance are categorized into 2 groups:

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1.) Internal failure costs — Before releasing product to customer. Includes

costs to rework, fix defects, wastage due to internal errors, and
unnecessary advertising.

2.) External failure costs — After releasing product to customer. Liability

and penalties cost, warranty costs, cost of developing and distributing fix,
support calls, and damage control costs.

As a project manager of a challenging software development project,

you are in the middle of project execution when one of your team
members approaches you and notifies you about a problem that has just
happened and that was not included in the risk register. What would be
your first action in this situation?

Inform your management

Add this problem to the project risk register

Create a workaround

Redo the Identify Risks process to find out other risks which might
have been neglected

Correct
Since this is problem that has occurred and not a risk, there’s no need to
add it to the risk register. The Identify Risks process will need to be
redone, but since this is a problem, the first action is to come up with a
solution for it. Creating a workaround is a solution. You might need to

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inform management as well, but this is reactive, not proactive, and not
the first thing you should do.

You are assigned as the manager of a construction project and the

project sponsor has provided you with a draft project charter and
immediately asks you to provide a preliminary analysis of the risks on
the project. Which of the following would BEST help this effort?

Resource plan from the project planning process

Project scope statement from the project planning process

A conversation with a team member from a similar project that

failed in the past

An article from PM Network Magazine

Correct
Since the only document that you have is the project charter, you are still
in the project initiating phase and none of the planning documents have
been generated yet. So the project scope statement and the resource
plan are not correct answers. The magazine article could be correct if it
was mentioned that the article gives some applicable insights, particularly
about the risks involved in your project.

You are asked by your management to provide an estimation of the

costs of a new residential building project using the costs of an earlier
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residential building project that your company had carried out as the
basis for your estimation. What type of estimation is this called?

Analogous Estimating

Bottom-up Estimating

Activity-based Estimating

Parametric Estimating

Correct
According to the PMBOK® Guide (6th Edition), analogous estimating is a
technique for estimating the duration or cost of an activity or a project
using historical data from a similar activity or project.

A project manager is performing Reserve Analysis as a technique in one

of the project management processes that he is currently working on.
Which of these is likely to be that process?

Estimate Reserves

Plan Costs

Determine Budget

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Develop Schedule

Correct
Reserve Analysis is one of the techniques which is used in more than one
process. Three processes of Estimate Costs, Determine Budget, and
Control Costs are the Cost Management processes that use this tool.

Knowledge management involves the recording and transferring of

experiences and skills to the organization in order to achieve project
objectives. Both explicit and tacit knowledge are important for this
purpose. One of the advantages of tacit knowledge is that

It is open to interpretation

It can be readily shared

It can be readily codified

It has context built in

Correct
Tacit knowledge, which is the information and belief system a team
member has within their minds and realm of experience, is not
documented or codified and must be drawn out by others in order to
utilize that knowledge. Therefore, unlike explicit knowledge, which is
written down, it is more difficult to share. However unlike explicit
knowledge, which lacks context and can therefore be open to

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interpretation, tacit knowledge has context built into it. Refer to section
4.4 of the PMBOK® Guide for additional info.

As a software development project manager, you are approached by one

of the software developers telling you that he has added additional
features to the end product which were not required in the scope. He
also mentions that adding those features did not take any extra time or
cost. What should be your action in this situation?

Carefully review and understand the new features

Implement change control process

Ask the software developer to remove the extra features

Ask the team member to issue a change request for the extra
features

Correct
As the project manager you are responsible to evaluate the situation
before making any decision about the change. This is the first step of the
integrated change control. After a complete review of the new features
you can realize the possible impacts of the change in terms of quality,
risk, etc. on the project.

Your team is involved in selecting a seller for one of the important

systems of the project. Two of your team members have a conflict over
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selecting the seller. One of them believes that you should choose
company X while the other argues that company Y should be awarded
the contract. Which one of the following will you refer the team to make
the decision?

Seller proposals

Source selection criteria

Project management plan

Procurement documents

Incorrect
The source selection criteria are the primary tools for evaluating potential
sellers and should be used by the entire team in order to make a
selection.

You are managing a project which is suffering many changes since the
initiation. You had to process a lot of changes and you did not have
enough time to do anything else. Which one of the followings best
describes what you should do in such a project?

Determine if changes are needed. Notify the stakeholders who are

affected by the changes and list all of the changes in the scope
management plan.

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Determine whether the changes are needed and whether they are
beneficial to the project. List all of the changes in the scope
management plan.

List all of the changes in the project charter, notify the project
stakeholders who are affected by the changes and ensure that you
have their sign off on the changes.

Determine whether a change is needed and whether it is

beneficial to the project, and notify the stakeholders who are
affected by the change.

Correct
You never list changes in the scope management plan or in the project
charter. As the project manager you need to make sure that changes are
needed and beneficial and also to make sure that the stakeholders get
notified.

You are a software development project manager and currently you are
in the process of developing the project risk management plan. Which
of the following is not part of such a plan?

Risk probability

Methodology

Risk categories

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Impact Matrix

Correct
The contents of the risk management plan according to the PMBOK®
Guide (6th Edition) are methodology, roles & responsibilities, budgeting,
risk categories, definition of risk probabilities and impacts, probability &
impact matrix, revised stakeholders tolerances, reporting formats, and
tracking. Basically the risk management plan describes how risk
management will be structured and performed on the project. It does not
identify individual risks or the probability of their occurrence.

You have just been assigned to manage a new change-driven project to

create a website for one of the company’s best customers. Your team of
five is experienced with this project approach and with the customer,
although they are starting on the same day as you are. Based on your
expertise, what would be the best leadership style you should employ
with the team?

Directing

Laissez-Faire

Servant Leader

Coordinator

Correct

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Servant Leadership is the best approach for a change-driven project and

when the team is experienced. They can be best served by your ability to
remove obstacles for them and play interference with other managers
and potential distractions.

You are managing a software development project budgeted at

$360,000 according to the earned value analysis report which you have
on your desk. As of today, you have spent $110,000, and the earned
value is $120,000. According to your earned value figures, your SPI is 0.8.
Which one of the following options best describes your project status?

Not enough information

On schedule

Behind schedule

Over budget

Correct
EV= $120,000
AC= $110,000
PV= $150,000
SPI= EV/PV
SPI= 120,000/150,000
SPI= 0.8
Since SPI is less than 1, we can conclude the project is behind schedule.

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Tom is a project manager managing a bridge construction project for

the first time. He has set up a series of interviews with various
stakeholders to gather some experiential and historical information on
some of the risks. Which process is Tom most probably involved in?

Perform Quantitative Risk Analysis

Plan Risk Responses

Identify Risks

Perform Qualitative Risk Analysis

Correct
Such meetings or interviews are usually done as part of Qualitative Risk
Analysis. This method draws on experiential learning and historical data
to quantify the impact of risks on project objectives. Read the question
carefully. It mentioned that the purpose of the interviews is to gather
information about some risks, not to discover some risks.

Which of the following project management processes covers formal

completion and handover of the final product/service?

Close Project or Phase

Control Procurements

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Validate Scope

Contract administration

Correct
Close Project or Phase is the process of finalizing all activities across all of
the Project Management Process Groups to formally complete the
project or phase.

The project charter provides the project manager with some benefits
and information. Which one of the following is most important for the
project manager?

Project authority

The formal role of 'Project Manager'

The project sponsors list

High level project scope

Correct
The project charter formally authorizes the existence of a project, and
provides the project manager with the authority.

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Which one of the following statements is correct?

Validate scope is primarily concerned with correctness of

deliverables.

Control quality is primarily concerned with acceptance of the

deliverables.

Validation of scope can only be done at the end of the project.

Control quality is generally performed before scope validation,

but these two can be performed in parallel.

Correct
Validate scope is primarily concerned with acceptance of deliverables
while control quality is primarily concerned with correctness of the
deliverables. Control quality is generally performed before scope
validation but these two can be performed in parallel. Validate scope can
be done at the end of each project phase in the project life cycle and at
other points throughout the project as part of M&C, i.e. validate scope is
done multiple times in the project.

What is the most appropriate guideline for managing documentation

artifacts at the start of your agile project?

Ensure that there is sufficient detail on the user stories in the

sprint backlog so that work can begin.

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Ensure that there is sufficient detail for each user story in the product
backlog so that work can begin.

Ensure that each user story for the project has been reflected in the
product backlog.

Ensure that there is sufficient detail for each user story so that each is
roughly equivalent in size.

Correct
The best guideline is to ensure that there is sufficient detail on the user
stories in the sprint backlog so that work can begin. User stories for the
entire project do not need to be created nor described in detail for work
to begin. Only those user stories that will be in the next iteration require
sufficient detail. User stories do not need to be similar in size.

What is the critical path with reference to the following network

diagram?

B-C-E-F

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A-D-F

A-D-E-F

B-C-D-F

Correct
There are 3 different paths in the diagram and we can calculate their
duration as:

A-D-F = 4 + 10 + 8 = 22 days
B-C-E-F = 5 + 7 + 8 + 8 = 28 days
B-C-D-F = 5 + 7 + 10 + 8 = 30 days

Among the above mentioned paths, B-C-D-F has the longest duration. A-
D-E-F which is mentioned as an answer choice is not actually a complete
path because activity D is not a predecessor of activity E.

Which one the following is not a benefit of quality audits?

Creating quality metrics

Identify all nonconformities, gaps, and shortcomings

Identify all good and best practices being implemented

Confirm the implementation of approved change requests

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Incorrect
Quality metrics are an output of the Plan Quality process and an input to
the Manage Quality process. The other choices are all benefits of quality
audits.

Tom is a construction project manager and recently approached an

insurance company to insure the project against the possible damages
of storms that are predicted to happen in the winter. Which risk
response strategy is Tom undertaking?

Avoid

Accept

Mitigate

Transfer

Correct
Risk Transference is a risk response strategy that shifts the impact of a
threat to a third party, together with ownership of the response. Taking
out insurance or a warranty transfers the risk from the owner to the other
party.

Your project team developed a team charter at the start of the project,
which is now midway to completion. The charter included a list of

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ground rules involving decision-making, meeting etiquette, and

interpersonal behavior. At a recent meeting, one of the team members
began to belittle the idea of another member, causing a heated
discussion and everyone leaving the meeting. As the project manager,
what should you do?

Meet with the team member who caused the disruption and advise
them that this behavior was not appropriate.

Call another meeting to continue the topics on the agenda.

Tell the supervisor of the disruptive employee that he is negatively

impacting the project.

Remind the team that they have a team charter and allow them
to work the issue out.

Correct
This question is about accountability. A team charter that is created by
the team means that the team is accountable for enforcing it. They may
need a reminder that this is the purpose of the charter, and they need to
be trusted to hold themselves to it.

You are managing a project with a lot of different detailed activities. The
project is within budget and the SPI according to the latest earned value
report is 1.2. The project risk review meetings are held according to an
organized schedule and you are satisfied with the risk management
activities of the project. However, you get notified by two different

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stakeholders that some of the project status reports are not accurate.
Which tool will you use to verify whether there is a problem?

Root-cause analysis

Inspection

Observations

Quality audits

Correct
According to the PMBOK® Guide (6th Edition), a quality audit is a
structured, independent process to determine if project activities comply
with organizational and project policies, processes, and procedures. In
this specific case you need to do quality audits to make sure that your
team is doing the project reporting in accordance with the project
policies and standards.

Which one of the following is not an input to the initiating process

group?

Historical project schedules

Lessons learned database

Project scope statement

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Company culture

Correct
The project scope statement is an output of the planning process group,
so it cannot be available as an input to the initiating process group. The
other options are among the Enterprise Environmental Factors or
Organizational Process Assets which are inputs of the initiating process
group.

You are manager of a project and after a periodic project schedule

update, the scheduler working on your team comes to you with the
following list of activities. He also mentions that the project is faced with
2 weeks of delay and as a corrective action he proposes to change the
sequence and perform activity H concurrent with activity G, instead of
after it. What would be your reaction?

This will help all of the delay to be recovered, so accept the proposal

This will help you spend less resources, so accept the proposal

It might affect activity I, so reject the proposal

This does not have any effect on the critical path, so reject the
proposal

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Incorrect
According to the list of activities, activity H has float and is not critical.
Therefore, changing its sequence to perform it sooner will not change the
project finish date. The best way is to complete the critical activities
earlier.

You are managing an IT project for an external client. The project is

ahead of schedule and your next activities are testing and hand over.
Which one of the followings will you be more concerned about in this
situation?

Time schedule

Performing quality control

Generating performance reports

Validate project scope

Incorrect
You are close to performing the final product handover to the external
client. Scope validation deals with acceptance by the customer. Without
this acceptance, you will not be able to move into the next project phase.

As the product owner of an agile social media app project, you noticed
that a competitor has just released an exciting new feature for their app.

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You realize that this feature will be well-received. What action should
you take?

Add this feature to the product backlog and reprioritize the

product backlog.

Add this feature to the current sprint backlog and reprioritize the
sprint backlog.

Create a change request for this feature

Update the work breakdown structure to include the new feature.

Correct
Agile projects, such as Scrum, do not utilize a formal change control
procedure since doing so would slow the team down. The product owner
instead is authorized to approve changes. They would not add this
feature to the sprint backlog, however, since the team is already
committed to the scope for the current sprint. Therefore, adding the
feature to the product backlog and reprioritizing the backlog is the best
answer.

A project manager is trying to plan for a contingency reserve as part of

the cost estimates for the project. Which of these would be an incorrect
way to plan for contingency reserves?

Plan for contingency reserve as a percentage of the estimated cost.

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Use quantitative analysis methods to arrive at the contingency

reserve.

Start with a zero value for contingency reserve.

Plan for contingency reserve as a fixed number.

Incorrect
According to the PMBOK® Guide (6th Edition), the contingency reserve
may be a percentage of the estimation, a fixed number, or may be
developed by using quantitative analysis methods such as a Monte Carlo
simulation. Therefore, it would be incorrect to start with a zero value for
contingency reserves.

As a project manager you are reviewing a report of the actual cost of the
completed work packages. You realize that a few work packages are
completed with an actual cost which is substantially lower than their
budgeted cost. You will immediately do all of the following actions
except?

Try to find ways to increase the actual costs

Make sure that proper resources are utilized

Make sure that the scope is properly done

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Make sure about the quality of the work

Correct
All of the incorrect answer choices refer to possible root causes of a
variance in the costs. If any of these proves to be the root cause, then the
corrective action might result in increasing the actual costs. However,
trying to find ways to increase the actual costs is not the first thing to do.

You are a project manager and your company has just completed an
unexpected round of layoffs. Morale is low, and human resources are
tighter than ever. Your project is now behind schedule because of the
loss of resources. Overtime work will be required of everyone for the
next several weeks in order to close the gap. One of the critical
resources on your project has an upcoming vacation that was approved
and scheduled months ago. However, without this resource you will be
unable to get back on schedule. What do you do?

Notify the project stakeholders of the situation immediately

Find another resource

Compress the schedule further

Cancel all vacations

Incorrect

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An unexpected loss of project resources due to company downsizing that

results in a schedule slip must be communicated to project stakeholders
immediately. It would be unfair to penalize the resource by cancelling his
vacation simply because it is the easiest way to get back on schedule.
Finding other resources by the project manager also doesn’t seem to be
possible in this situation.

As the project manager you are negotiating a contract with a seller. You
want to go in for a fixed price type of contract. Which other terminology
could be used to refer to the fixed price type of contract?

Cost-Plus-Fixed-Fee contract

Time and material contract

Lump sum contract

Cost-Plus-Fee contract

Correct
A fixed price contract is synonymous with a lump sum contract. This type
of contract involves a fixed total price, or a lump sum, for a well-defined
product.

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